Economic and Business Environment · Entrepreneurship Scenario

Types of Entrepreneurs and Entrepreneurship Explained

Updated 11 October 2026 · Fact-checked

Entrepreneurs are classified on different bases: type of business (trading, manufacturing, service, agri), technology (technical, non-technical), ownership (private, state, joint), and growth (growth, super-growth). Entrepreneurship also has forms such as social, women and intrapreneurship. To answer, name the basis, give the type, define it and add one Indian example.

Understand Types of Entrepreneurs and Entrepreneurship

An entrepreneur is a person who spots an opportunity, organises resources, takes the risk and starts a business. There is no single kind of entrepreneur. Textbooks sort them into groups, and each group uses a different basis of classification.

The common bases are: type of business, use of technology, ownership, and growth. Under each basis you get two to four types. For example, by business you get trading, manufacturing, service and agricultural entrepreneurs. By technology you get technical and non-technical entrepreneurs. By ownership you get private, state and joint entrepreneurs. By growth you get growth and super-growth entrepreneurs.

Then there are special forms of entrepreneurship. Social entrepreneurship aims first at solving a social problem, such as education, health or rural livelihood, and uses business methods to do it. Profit is a means, not the main goal. Women entrepreneurship means an enterprise owned and run mainly by a woman or women, often supported by government schemes and self-help groups. Intrapreneurship means acting like an entrepreneur inside an existing company.

The key difference: an entrepreneur starts and owns the venture and bears the risk. An intrapreneur is an employee who innovates within the firm, uses the firm's resources and does not bear the final financial risk.

Exam questions usually ask you to classify, to give features, or to compare two terms. Learn the basis first, then the types under it. That structure keeps your answer neat and earns marks.

Key rules to remember

Classification by type of business: Trading | Manufacturing | Service | Agricultural; Trading entrepreneurs buy and sell goods. Manufacturing ones make goods. Service ones sell services such as consulting or transport. Agricultural ones work in farming and allied activity.
Classification by technology: Technical | Non-technical; Technical entrepreneurs build on technical skill and make products. Non-technical ones focus on marketing, distribution and the business model, not on technology.
Classification by ownership: Private | State (public sector) | Joint; State means the government owns or controls the enterprise. Joint means private persons and the government together hold ownership.
Classification by growth: Growth entrepreneur | Super-growth entrepreneur; Growth entrepreneurs pursue a high-growth industry. Super-growth ones show very high, fast growth in their performance.
Social entrepreneur: Social mission first, business methods as the tool; Surplus is usually reinvested in the mission, not focused on owner profit.
Entrepreneur vs intrapreneur: Entrepreneur: own venture, own risk | Intrapreneur: employee, firm's resources, firm's risk; Both innovate. Ownership and risk-bearing are the difference.

How to solve Types of Entrepreneurs and Entrepreneurship questions

Use this method for any question on types of entrepreneurs or entrepreneurship.

1Read the question and mark what it asks: classify, define, list features, give examples or compare.
2Identify the basis of classification (business, technology, ownership, growth) or the special form (social, women, intra).
3Write a one-line definition of the term in plain words.
4List the types or features as short numbered points, each with a half-line explanation.
5Add one Indian example for each type where the question asks for examples.
6For comparison questions, write 4 to 5 points side by side: meaning, ownership, risk, goal, example.
7Close with a one-line conclusion tying the type to its role in the economy.

Quickest way: Basis then types

When to use it: Use when you have little time or must write a short answer worth few marks.

Write the basis in one line.
List the types under it in a short list.
Give a single-line meaning for each type.
Add one example only if the question says so.
For comparisons, write three sharp points: who owns, who bears risk, what the goal is.

Common mistakes in Types of Entrepreneurs and Entrepreneurship

Mixing up the bases, such as calling a manufacturing entrepreneur a technical entrepreneur as if they were the same group.
Students memorise type names without remembering which basis they belong to.
Fix: Always write the basis first. A person can be a manufacturing entrepreneur by business and technical by technology at the same time.
Saying a social entrepreneur does not earn any money.
The phrase 'social mission' makes students think it is charity.
Fix: Say the social goal comes first and revenue is used to sustain and grow the mission. It is a business approach, not a donation.
Treating an intrapreneur as the owner of the venture.
Both words sound alike and both involve innovation.
Fix: Remember: intra means inside. An intrapreneur is an employee using the firm's resources, so the firm bears the risk.
Defining a women entrepreneur as any business that serves women.
Students read the label as the customer and not the owner.
Fix: Focus on ownership and control: the enterprise is owned and run by a woman or women.
Confusing state entrepreneurs with private ones, or forgetting the joint type.
Students only remember private and public.
Fix: Learn the three together: private, state, joint. Joint combines private and government ownership.
Writing types with no explanation, just a list of names.
Students run short of time in a written paper.
Fix: Give at least a half-line meaning for every type. A bare list earns few marks.

Worked examples

Example 1

Explain the classification of entrepreneurs on the basis of ownership, with examples.

Show the solution

Name the basis: ownership of the enterprise.
Private entrepreneur: the business is owned and run by private persons. Example: a family-owned textile unit in Surat.
State entrepreneur: the business is owned or controlled by the government, with the government holding the controlling share. Example: a government-controlled public sector undertaking such as Bharat Heavy Electricals Ltd (BHEL), SAIL or ONGC.
Joint entrepreneur: ownership is shared between private persons and the government, so the company has both government and private equity. Example: a joint-sector company in which a state government and private promoters both hold shares.
Conclude that the types differ in who owns capital and who takes the decisions.

Answer: By ownership, entrepreneurs are private (owned by private persons), state (owned or controlled by the government) and joint (shared equity between private persons and the government). Each is distinguished by who holds ownership and control.

Example 2

Distinguish between an entrepreneur and an intrapreneur.

Show the solution

Meaning: an entrepreneur starts and owns a new venture. An intrapreneur is an employee who innovates inside an existing firm.
Ownership: the entrepreneur owns the business. The intrapreneur does not.
Risk: the entrepreneur bears the financial risk. The firm bears the risk for the intrapreneur.
Resources: the entrepreneur arranges resources. The intrapreneur uses the firm's resources.
Reward: the entrepreneur earns profit. The intrapreneur earns salary, bonus or recognition.
Both bring new ideas, so the difference is ownership and risk, not creativity.

Answer: An entrepreneur owns the venture, raises resources and bears the risk and profit. An intrapreneur is an employee who innovates within the firm using its resources, with the firm bearing the risk.

Exam tips

Learn the four bases and their types as a single list. Many questions ask only for classification.
For 'with examples' questions, prepare one well-known Indian example for each type so you do not stall in the exam.
Prepare a ready five-point table-style comparison of entrepreneur and intrapreneur, written as separate lines in your answer.
For social entrepreneurship, remember the three ideas: social mission, innovation, and sustainability through business methods.
Use the 15 minutes of reading time to choose the questions where you can name the basis and types quickly.

Practice questions from Entrepreneurship Scenario

Types of Entrepreneurs and Entrepreneurship: frequently asked questions

What are the main types of entrepreneurs?

They are grouped by basis. By business: trading, manufacturing, service and agricultural. By technology: technical and non-technical. By ownership: private, state and joint. By growth: growth and super-growth.

What is social entrepreneurship?

It is using business methods to solve a social problem, such as poor access to education or health. The social mission comes first. Revenue is used to keep the work going and to grow it.

What is the difference between entrepreneurship and intrapreneurship?

Entrepreneurship means starting and owning a new venture and bearing its risk. Intrapreneurship means innovating as an employee inside an existing firm, using its resources. The firm bears the risk.

Who is a women entrepreneur?

A woman or group of women who start, own and run an enterprise. The focus is on ownership and control, not on who the customers are.